[Federal Register Volume 61, Number 32 (Thursday, February 15, 1996)]
[Rules and Regulations]
[Pages 5943-5945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3406]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Part 416
[Regulations No. 16]
RIN 0960-AD87
Supplemental Security Income for the Aged, Blind, and Disabled;
Extension of Time Period for Not Counting as Resources, Funds Received
for Repair or Replacement of Damaged or Destroyed Excluded Resources in
the Supplemental Security Income Program
AGENCY: Social Security Administration.
ACTION: Final rules.
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SUMMARY: In the past several years, portions of the United States have
experienced natural disasters that have had unprecedented effects on
supplemental security income (SSI) recipients. To provide us with the
flexibility to deal with these and future occurrences, we are modifying
our current regulations regarding the period of time that cash and in-
kind items received for the repair or replacement of certain destroyed
or damaged excluded resources would not count toward the resource
limit.
EFFECTIVE DATE: These rules are effective February 15, 1996.
FOR FURTHER INFORMATION CONTACT: Regarding this Federal Register
document--Henry D. Lerner, Legal Assistant, Division of Regulations and
Rulings, Social Security Administration, 6401 Security Boulevard,
Baltimore, MD 21235, (410) 965-1762; regarding eligibility or filing
for benefits--our national toll-free number, 1-800-772-1213.
SUPPLEMENTARY INFORMATION: The regulations at Sec. 416.1205(c) provide
that SSI recipients can have no more than $2,000 in countable resources
and SSI couples can have no more than $3,000. The regulations at
Sec. 416.1237 provide that assistance received under the Disaster
Relief and Emergency Assistance Act or other assistance provided under
a Federal statute because of a catastrophe which is declared to be a
major disaster by the President of the United States or comparable
assistance received from a State or local government, or from a
disaster assistance organization, is excluded permanently under the SSI
program in determining countable resources.
The regulations at Sec. 416.1232 complement the disaster assistance
exclusion by providing that cash or in-kind items for the repair or
replacement of lost, stolen, or damaged excluded resources are not
treated as resources for 9 months.
The regulations also provide for one extension for a reasonable
period up to an additional 9 months for good cause if circumstances do
not permit repair or replacement within the initial 9-month period and
the individual intends to use the funds for repair or replacement.
Excluded resources generally include the individual's home,
household goods and personal effects, and the automobile, as are
described in Secs. 416.1212, 416.1216 and 416.1218 respectively.
Private insurance payments do not qualify as disaster assistance
and, therefore, cannot be permanently excluded from resources. For some
SSI recipients affected by natural disasters, the maximum period of 18
months during which monies received to repair or replace excluded
resources are not treated as resources will not be sufficient and some
of these individuals will consequently lose SSI and Medicaid
eligibility.
In the past several years, portions of the United States have
experienced natural disasters that have had unprecedented effects on
SSI recipients. In August 1992, Hurricane Andrew devastated south
Florida causing damage estimated in excess of $18 billion. Because of
the extent of the devastation, SSI recipients in the area were unable
to use insurance payments to repair or replace their damaged property
within the maximum 18-month period provided by regulations during which
those payments would not be treated as resources. With the expiration
of this period, the payments would have counted as resources for SSI
purposes. On March 17, 1994 (59 FR 12544), we published interim final
regulations with a request for comments which provided victims of
Hurricane Andrew with an additional 12-month time period in which to
repair or replace their property.
History has shown that current regulations generally provide a
sufficient time period for individuals to repair or replace their
excluded resources destroyed or damaged by natural disasters. However,
in the event disasters of the magnitude of Hurricane Andrew occur, we
wish to have the flexibility in regulations to extend the period that
payments or in-kind assistance for the repair or replacement of
affected excluded resources will not count as resources.
We are revising our regulations to provide us with the flexibility
to provide individuals with additional time to repair or replace
destroyed or damaged excluded resources when such disasters occur and
certain other criteria are met. These regulations will extend the
maximum 18-month period during which cash or in-kind replacement
received from any source for purposes of repairing or replacing an
excluded resource is not counted as a resource for up to an additional
12 months. This additional time period only applies in the case of
Presidentially declared major disasters as long as the individual
intends to repair or replace the property and good cause still exists.
These regulations were published in the Federal Register (60 FR
26387) as a notice of proposed rulemaking (NPRM) on May 17, 1995.
Interested parties were given 60 days to submit comments. Public
comments were received from two legal services organizations who were
concerned about how the regulations would affect individuals who
suffered losses in recent disasters. These comments raised an issue
regarding how we will apply the additional 12-month extension. We
address this issue by clarifying the scope of the regulation in the
response below. With this clarification, we are adopting the
regulations as proposed.
Comment: The additional 12-month extension for not counting certain
funds as a resource under these regulations should apply to individuals
for whom the original 18-month noncounting period (9 months and 9-month
good
[[Page 5944]]
cause extension) has expired prior to the effective date of these
regulations.
Response: Prior to the promulgation of these rules, our regulations
provided that cash or in-kind replacement received for purposes of
repairing or replacing an excluded resource would not be counted as a
resource for a maximum period of 18 continuous months, commencing with
the month following the month of receipt. These rules provide, under
certain circumstances, for an additional 12-month extension to the
former maximum noncounting period, thereby establishing a new 30-month
maximum period during which such cash or in-kind replacement will not
be considered resources. The total noncounting period may not exceed 30
months from the month of receipt because it is reasonable to expect
individuals to begin rebuilding or repairing within that timeframe. We
chose not to provide a full 12-month extension to individuals whose
prior 18-month noncounting period had expired because to do so would
provide a noncounting period in excess of the 30-month maximum
established by this regulation.
Therefore, if the original 18-month noncounting period (9 months
plus 9-month good cause extension under Sec. 416.1232(b)) has expired
prior to the effective date of these regulations, we will extend the
period for not counting the funds as a resource if the requirements in
Sec. 416.1232(c) are met, but only within the limits of the new 30-
month maximum (9-months plus 9-month good cause extension plus 12-month
good cause extension provided under Sec. 416.1232(c)). The extension
would be applicable with the first day of the month which immediately
follows the month these regulations become effective, and will remain
applicable for a period not to exceed the number of months remaining in
the 30-month period that commences with the month following the month
of receipt of the funds.
For example, if the individual's 18-month noncounting period
expired 6 months prior to the effective date of these regulations, we
would extend the period for not counting the funds as resources
prospectively for up to an additional 6 months. There will be no
retroactive effect. The last month of the noncounting period cannot
exceed the 30th (thirtieth) month following the month of receipt of any
payment.
Regulatory Procedures
Executive Order 12866
We have consulted with the Office of Management and Budget (OMB)
and determined that these rules do not meet the criteria for a
significant regulatory action under Executive Order 12866. Thus, they
are not subject to OMB review.
Paperwork Reduction Act of 1980
These regulations impose no new reporting or recordkeeping
requirements requiring OMB clearance.
Regulatory Flexibility Act
We certify that these regulations will not have a significant
economic impact on a substantial number of small entities because they
affect eligibility for SSI payments of individuals. Therefore, a
regulatory flexibility analysis as provided in Public Law 96-354, the
Regulatory Flexibility Act, is not required.
Waiver of 30-Day Delay in Effective Date
These new SSI resource regulations are effective on publication,
rather than 30 days after publication. Section 702(a)(5) of the Social
Security Act makes the regulations we prescribe subject to the
rulemaking procedures established under section 553 of the
Administrative Procedure Act (APA), 5 U.S.C. 553. Section 553(d) of the
APA requires that the effective date of a substantive rule be no less
than 30 days after its publication, except in cases of: Rules which
grant or recognize an exemption or relieve a restriction;
interpretative rules and statements of policy; or as otherwise provided
by the Agency for good cause found and published with the rule.
In accordance with 5 U.S.C. 553(d)(1), these rules grant or
recognize an exemption or relieve a restriction because under certain
circumstances, they remove from consideration as resources for a
period, cash or in-kind replacement received for the repair or
replacement of certain lost or damaged property. Furthermore, we have
determined that under 5 U.S.C. 553(d)(3), good cause exists for
dispensing with the minimum 30-day period between the publication date
and the effective date. A delay in the application of these rules may
result in the loss of SSI benefits for certain individuals who have
been unable to repair or replace certain property lost or damaged as a
result of a presidentially-declared disaster. We believe that making
available to these individuals the relief provided by these rules as
quickly as possible is good cause sufficient to dispense with the
minimum 30-day period prescribed by 5 U.S.C. 553(d). Accordingly, these
rules are effective on publication.
(Catalog of Federal Domestic Assistance Program No. 96.006,
Supplemental Security Income)
List of Subjects in 20 CFR Part 416
Administrative practice and procedure, Aged, Blind, Disability
benefits, Public assistance programs, Reporting and recordkeeping
requirements, Supplemental Security Income.
Dated: February 2, 1996.
Shirley S. Chater,
Commissioner of Social Security.
Part 416 of chapter III of title 20 of the Code of Federal
Regulations is amended as follows:
PART 416--[AMENDED]
Subpart L--[Amended]
1. The authority citation for subpart L of part 416 is revised to
read as follows:
Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f),
1621, and 1631 of the Social Security Act (42 U.S.C. 902(a)(5),
1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, and 1383); sec. 211,
Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).
2. Section 416.1232 is amended by revising paragraph (b), by
redesignating paragraph (c) as paragraph (d) and by adding a new
paragraph (c), to read as follows:
Sec. 416.1232 Replacement of lost, damaged, or stolen excluded
resources.
* * * * *
(b) The initial 9-month time period will be extended for a
reasonable period up to an additional 9 months where we find the
individual had good cause for not replacing or repairing the resource.
An individual will be found to have good cause when circumstances
beyond his or her control prevented the repair or replacement or the
contracting for the repair or replacement of the resource. The 9-month
extension can only be granted if the individual intends to use the cash
or in-kind replacement items to repair or replace the lost, stolen, or
damaged excluded resource in addition to having good cause for not
having done so. If good cause is found for an individual, any unused
cash (and interest) is counted as a resource beginning with the month
after the good cause extension period expires. Exception: For victims
of Hurricane Andrew only, the extension period for good cause may be
extended for up to an additional 12 months beyond the 9-month extension
when we find that the individual had good cause for not replacing or
repairing an excluded resource within the 9-month extension.
[[Page 5945]]
(c) The time period described in paragraph (b) of this section
(except the time period for individuals granted an additional extension
under the Hurricane Andrew provision) may be extended for a reasonable
period up to an additional 12 months in the case of a catastrophe which
is declared to be a major disaster by the President of the United
States if the excluded resource is geographically located within the
disaster area as defined by the Presidential order; the individual
intends to repair or replace the excluded resource; and, the individual
demonstrates good cause why he or she has not been able to repair or
replace the excluded resource within the 18-month period.
* * * * *
[FR Doc. 96-3406 Filed 2-14-96; 8:45 am]
BILLING CODE 4190-29-P